The University of Southampton
University of Southampton Institutional Repository

Audit committees, Cadbury code and audit fees: An empirical analysis of UK companies

Record type: Conference or Workshop Item (Paper)

Audit committees have become more important and prevalent in recent years but there is a relative paucity of empirical research concerning their value. This paper contributes to this research by reporting an analysis of the relationship between the size of the audit fee and the existence of an audit committee. The analysis builds on previous research in this area in several ways. First, it uses more recent data than previous research which may have been influenced by transitional problems. The data in this paper were collected from financial reports for the years ending in 1994 and 1995. Second, it investigates the effect on audit fees of audit committee adherence to the Cadbury Committee Report recommendations of 1992. Finally, the analysis is set within a theoretical framework developed from agency theory. The results suggest that audit committees have been through a transitional phase comprising changes to the general audit environment and a learning phase for the establishment and operation of committees. By 1995 there is no evidence that audit committees, whether adhering to the Cadbury Code or not, have any overall effect on audit fees. The only effect found was a reduction in fees due to improved internal controls in the presence of auditee complexity. There was evidence that size was the main determinant of the presence of an audit committee.

Full text not available from this repository.

Citation

Masters, C. (1996) Audit committees, Cadbury code and audit fees: An empirical analysis of UK companies At National Auditing Conference. (doi:10.1108/02686900010344638).

More information

Published date: 1996
Venue - Dates: National Auditing Conference, 1996-01-01

Identifiers

Local EPrints ID: 51752
URI: http://eprints.soton.ac.uk/id/eprint/51752
PURE UUID: fb84463c-8eac-4cf2-aae5-21915d252cdd

Catalogue record

Date deposited: 28 Aug 2008
Last modified: 17 Jul 2017 14:48

Export record

Altmetrics


Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×